Corporation Tax Act 2009 section 213

Certain amounts brought into account under Part 3

Section 213 identifies certain types of property income that, exceptionally, may be taxed as trading profits rather than as profits of a property business.

• When calculating profits of a property business, four specific provisions from Part 3 (trading income) must also be considered: those relating to tied premises, caravan sites where a trade is carried on, surplus business accommodation, and wayleave payments.
• These provisions allow certain income that would normally fall within a property business to be treated instead as trading income for corporation tax purposes.
• The effect is that the relevant amounts are removed from the property business calculation and brought into the trading profit calculation, preventing double counting.
• This section ensures that where property-related income is more properly characterised as part of a trade, it is taxed accordingly under the trading income rules.